MD_DA840 Cheese - Western U.S. Report 25 - Released on June 17, 2020 Some western contacts report they are running more milk through cheese vats than ever before and are fortifying the make process where they can. Retail cheese demand has remained strong. Food service accounts are still below seasonal purchase levels, but buyers are trying hard to refill the cheese pipeline. And with the added surge of government purchases, the market segments form a trifecta that keeps cheese production at full capacity. A few manufacturers suggest their cheese facilities are running at over 125 percent design capacity. Industry contacts report cheese supplies, although tight, are in better shape than a few weeks ago. However, it is still challenging for buyers to source the specific type and quantities of cheese they need. With the turbulent fall and rise of cheese prices, end users and suppliers are finding it more difficult to forecast market trends. Cash market prices in the U.S. have risen to a point where they are not as competitive as cheese prices from the EU. Some market observers suggest exports are slowing in response to the higher prices, making U.S. cheese a little more available. Many industry contacts think prices and demand may swing back and forth for a few months before finding some form of equilibrium. WESTERN WHOLESALE PRICE ADJUSTMENTS In the West, wholesale prices were up $.0975 for process, and up $.0475 for cheddar block, cuts and Monterey Jack. Swiss cut wholesale prices are unchanged from the previous week. WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS)) Cheddar 10 pound Cuts 2.8725-3.0725 Cheddar 40 pound Block 2.6250-3.1150 Monterey Jack 10 pounds 2.8600-3.1350 Process American 5 pound Loaf 2.4725-2.7275 Swiss 6-9 pound Cuts 2.8600-3.2900 Information for the period June 15 - 19, 2020, issued weekly Secondary Sourced Information: CME CLOSE In CME Group trading Wednesday, barrels closed at $2.3300, compared to the weekly average price of $2.3685 from last week. Blocks closed at $2.5000, compared to the weekly average price of $2.5450 from last week. Published by: Dairy Market News - Madison, WI MIKE BANDLI, (608)422-8592 Email: mike.bandli@usda.gov Additional Dairy Market News Information: Dairy Market News (DMN) by Phone: (608)422-8602 DMN Website: https://www.ams.usda.gov/market-news/dairy DMN MARS (My Market News): https://mymarketnews.ams.usda.gov